IGL supplies Dominos Pizza scooters with CNG

Vol 20, PW 14 (06 Apr 17) Midstream & Downstream
     

Delhi-based gas retailer Indraprastha Gas confidently expects to maintain double digit sales growth in 2017-18 as Narendra Modi continues to press for increased gas use by homes, businesses and the transport sector.

A senior company source tells this report it has earmarked Rs250cr ($38m) CAPEX in 2017-18 for the National Capital Region (Delhi, Noida, Greater Noida and Ghaziabad) to set up at least 30 CNG stations and supply piped gas to 150,000 homes. Overall gas sales growth is expected to be 13% this fiscal, similar to 2016-17.

CNG sales are expected to grow between 7% and 8% as more and more taxis, buses and cars switch fuel. IGL is optimistic that app-based taxi services such as Uber, Ola or Meru will increase CNG use with more refueling stations springing up on highways.

IGL sold 1.25bn cubic metres of gas from April to December 2016, a 13% increase over 1.093bn cubic metres in the same period last year. By February 28, 2017, IGL had increased the total number of homes connected to its piped gas network to 724,048 over 636,318 last year.

Similarly the number of factories connected has increased from 821 to 931 but the number of business connections has increased very slowly from 1757 to 1800.